Amazon Shares Slide Into Technical Bear Market as $200 Billion AI Push Raises Red Flags

DIR.S.ETF-D.D.L.AM.BU.3XN US25460E2735

Shares of Amazon tumbled despite a quarterly revenue beat, as investors recalibrate the implications of an expansive AI-spending plan. After a nine-day losing streak, the stock has fallen more than 18% and slipped into a technical bear market in February 2026. The focus of concern is a massive capex program aimed at AI infrastructure, chips, and robotics.

• Q4 2025 revenue set a new record: $213.4 billion.
• Planned AI investments for 2026: $200 billion.
• Price decline: more than 18% during the latest downturn.

Even with a fourth-quarter performance that surpassed expectations, the market’s reaction was negative due to the scale of the 2026 investment plan. Approximately $200 billion is earmarked for AI-related initiatives including infrastructure, specialized chips, and robotics. This disclosure deepens skepticism about the profitability of AI initiatives and whether such outlays could deplete cash reserves or raise leverage.

AWS continued to grow, but the commentary surrounding cost pressures persisted. The cloud arm reported an annualized revenue run rate of $142 billion, a figure that did little to dispel investor worries about the broader cost trajectory tied to the AI push.

Technical Bear Market and Sector Pressure

With the stock trading near $198.79, Amazon entered a technical bear market in February 2026, echoing concerns that Microsoft faced at the end of January over similar AI-investment anxieties. The broader technology sector, especially cloud and software players associated with the so‑called Magnificent Seven, is under scrutiny as investors weigh the earnings impact of aggressive AI strategies.

For the triple-leveraged ETF tied to Amazon, the heightened volatility translates into amplified daily moves, underscoring the need for active management by seasoned investors.

Outlook and Key Levels

Looking ahead, the coming week’s US inflation data (CPI) will be a primary driver for rate expectations and the valuation of tech growth stocks, including Amazon. The critical technical zone for the shares lies between $198 and $199; a sustained hold in this range could set the stage for a bottom, pending clearer guidance from management on the timing of AI monetization. Additional clarity on the AI roadmap remains essential to restore investor confidence.

@ boerse-global.de | US25460E2735 AMAZON